Switch [BUG] Sword Performing as Dagger (Multiplayer)

I had a Rusty Sword that I was using with no problems until I got an Iron Dirk out of a chest from the mines. Once it was in my inventory, my Rusty Sword was acting like a dagger (delay, not swinging in an arc). I went home and put the dagger in a chest hoping that would solve the issue, but when I went back to the mines a few days later my Rusty Sword worked normally at first, then suddenly started acting like a dagger again! Now I can't really mine because I can't fight a bunch of enemies with just a low-level dagger. My sister who I play with has not had this issue, even though she has also picked up a dagger in the mines. She is the host of the save file and we both updated to 1.5.4 the day this bug started occurring, if that matters.
 
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